Japanese Households Feel the Pinch as BOJ Hikes Interest Rates
January 29, 2025 at 8:21 AM GMT+0

Japanese Households Feel the Pinch as BOJ Hikes Interest Rates

Japanese citizens are experiencing the tangible effects of heightened interest rates on their personal lives, as revealed by recent analyses of social media discussions. According to Bloomberg, the latest policy decision by the Bank of Japan (BOJ) under Governor Kazuo Ueda has attracted predominantly negative sentiment, with about 80% of YouTube comments expressing concerns over housing loans and inflation—issues that directly impact daily life.

Tomoki Fukuma, CEO of TDAI Lab, analyzed roughly 8,500 comments on YouTube posted after the rate hike announcement. His findings indicate a shift from abstract economic concepts to concerns directly tied to the public's everyday challenges. While discussions post-March and July hikes focused on terms like "bonds," "companies," and "finance ministry," the latest discourse revolves around personal financial hardships, notably mortgages and inflation.

The BOJ recently increased its policy rate to 0.5%, the highest since 2008, marking the third hike in under a year. As per IndexBox data, this move reflects a broader trend where 57.1% of respondents to a BOJ December survey felt financially strained, a notable rise from 49.5% in March 2024, just before the initial hike. About 20% currently deem the interest rates excessively high, growing from 13.7% the previous March.

Mizuho Research and Technologies report that young households, particularly those under 39, are expected to bear the brunt, potentially losing Y=40,000 ($257) annually primarily due to mortgage rate hikes.

【Exchange rate: 1 USD = 155.52 JPY.】

Should interest rate increases persist, outpacing wage growth, there is a risk of escalating pessimism that might influence the government's stance on future BOJ policies. Political figures, including current leaders, face the challenge of balancing BOJ independence with public discontent from rising living costs, a dilemma that contributed to former Prime Minister Fumio Kishida's decline in public support.

Source: IndexBox Market Intelligence Platform

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  3. 3. MARKET OVERVIEW

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  12. LIST OF TABLES

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    9. Exports, In Physical Terms, By Country, 2012–2024
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  13. LIST OF FIGURES

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    10. Production Volume And Growth
    11. Exports And Growth
    12. Export Prices And Growth
    13. Market Size And Growth
    14. Per Capita Consumption
    15. Imports And Growth
    16. Import Prices
    17. Production, In Physical Terms, 2012–2024
    18. Production, In Value Terms, 2012–2024
    19. Production, By Country, 2024
    20. Production, In Physical Terms, By Country, 2012–2024
    21. Imports, In Physical Terms, 2012–2024
    22. Imports, In Value Terms, 2012–2024
    23. Imports, In Physical Terms, By Country, 2024
    24. Imports, In Physical Terms, By Country, 2012–2024
    25. Imports, In Value Terms, By Country, 2012–2024
    26. Import Prices, By Country, 2012–2024
    27. Exports, In Physical Terms, 2012–2024
    28. Exports, In Value Terms, 2012–2024
    29. Exports, In Physical Terms, By Country, 2024
    30. Exports, In Physical Terms, By Country, 2012–2024
    31. Exports, In Value Terms, By Country, 2012–2024
    32. Export Prices, 2012–2024

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